Both retailers and resellers are businesses that buy products, stock and sell them to make money. They can operate on the internet, through brick-and-mortar stores or both. They buy from wholesalers and distributors, and then resell it to businesses or consumers. Although many types of resellers are available, there are two major kinds of dropshipping and private labeling. Private labeling occurs when a reseller rebrands the product of a manufacturer by incorporating their name, logo, and packaging. This kind of reselling is common in the tech industry where a computer maker may offer their own hardware, as well as third-party software and accessories.
Another form of reselling is bundling. Bundling is when a reseller blends similar products from a variety of companies to create a bundle that’s attractive. For instance, a seller might purchase digital cameras memory cards, and Photoshop Lightroom software from different manufacturers to create a kit that helps beginners get started with digital photography.
Typically, retailers purchase goods in large quantities from distributors and wholesalers and then sell them at a higher price to consumers. They also sell through marketplaces on the Internet, such as eBay or Amazon. Retailers offer a range of added value services, such as customization and technical support. They can also charge additional charges such as shipping and handle charges. Home Depot, for example, might be more expensive than Walmart because it owns its own store and handles logistics such as storage and delivery.